Homestead Oil Corp was incorporated on January 1, 2019, and issued the following stock for cash 900,000 shares of no par common stock were authorized 150,000 shares were issued on January 1, 2019, at $19 00 per share 220,000 shares of $110 par value, 9 00 cumulative, preferred stock were authorized 55,000 shares were issued on January 1, 2019, at $150 per share Net income for the years ended December 31, 2019 and 2020 was $1,430,000 and $2,520,000, respectively No dividends were declared or paid during 2019 However, on December 28, 2020, the board of directors of Homestead declared dividends of $1,490,000, payable on February 12, 2021, to holders of record as of January 19, 2021 1 Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2019 Indicate the financial statement effect (Enter decreases with a minus sign to indicate a negative financial statement effect ) 2 Use the horizontal model for the declaration of dividends on December 28, 2020 Indicate the financial statement effect (Enter decreases with a minus sign to indicate a negative financial statement effect ) 3 Use the horizontal model for the payment of dividends on February 12, 2021 Indicate the financial statement effect (Enter decreases with a minus sign to indicate a negative financial statement effect )

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Posted on Sep 18, 2024

Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 900,000 shares of no-par common stock were authorized; 150,000

Homestead Oil Corp. was incorporated on January 1, 2019, and issued the following stock for cash:

900,000 shares of no-par common stock were authorized; 150,000 shares were issued on January 1, 2019, at $19.00 per share.
220,000 shares of $110 par value, 9.00% cumulative, preferred stock were authorized; 55,000 shares were issued on January 1, 2019, at $150 per share.
Net income for the years ended December 31, 2019 and 2020 was $1,430,000 and $2,520,000, respectively.
No dividends were declared or paid during 2019. However, on December 28, 2020, the board of directors of Homestead declared dividends of $1,490,000, payable on February 12, 2021, to holders of record as of January 19, 2021.

1. Use the horizontal model for the issuance of common stock and preferred stock on January 1, 2019. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)

2. Use the horizontal model for the declaration of dividends on December 28, 2020. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)

3. Use the horizontal model for the payment of dividends on February 12, 2021. Indicate the financial statement effect. (Enter decreases with a minus sign to indicate a negative financial statement effect.)